June 29, 2022 (MLN): The National Assembly on Wednesday has passed an amendment to impose a Rs50 per litre levy on petroleum products, Dawn reported today.
Commenting on the above development, Finance Minister Miftah Ismail said that currently no levy had been imposed on petroleum products.
During the NA session which is currently underway, the government had sought approval from the House to impose a petroleum levy of Rs50/litre on petroleum products.
To revive IMF’s $6 billion stalled loan program, the government has made significant amendments in the Finance Bill 2023 including the imposition of a 10% supertax on 13 major industries, a reduction in advance income tax on cellular services from 15% to 13%, and slashing the proposed duties on low-value handsets.
In the FY23 budget speech, the government had exempted those earning up to Rs100,000 per month from paying income tax, now the government has increased the limit from the earlier Rs50,000 per month.
The NA also approved amendments for collecting sales tax from traders through electricity bills and imposing a 5pc tax on the services of IT and software consultants.
An amendment to take back the relief provided to the salaried class was also approved. Under the new rates, no tax will be imposed on those earning less than Rs0.6mn per year. Meanwhile, those earning between Rs0.6mn to Rs1.2mn will have to pay a fixed tax of 2.5% of the amount exceeding Rs0.6mn.
Those earning Rs1.2mn to Rs2.4mn will have to pay a fixed tax of Rs15,000 plus 12.5% of the amount exceeding Rs1.2m. Where the taxable income exceeds Rs2.4mn but does not exceed Rs3.6mn the tax rate is Rs136,000 plus 20% of the amount exceeding Rs2.4mn.
Those earning between Rs3.6mn to Rs6mn will have to pay Rs405,000 plus 25% of the amount exceeding Rs3.6mn. For income between Rs6mn to 12mn, the tax will be Rs10mn plus 32.5% of the amount exceeding Rs6m. Where the taxable income exceeds Rs12mn, the tax is Rs2.9mn plus 35% of the amount exceeding Rs12mn.
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